In a large bowl, combine the sugar, butter, cream cheese, salt, almond and vanilla extracts, and egg yolk. Beat until smooth. Stir in flour until well blended. Form the dough into two equal-sized disks, wrap in plastic wrap, and chill the dough for one hour.

Preheat oven to 375 degrees.

On a lightly floured surface, roll out the dough to ¼-inch thickness. Keep remaining dough refrigerated until ready to use. Cut into desired shapes with lightly floured cookie cutters. Place 1 inch apart on ungreased cookie sheets.

Bake for 7 to 10 minutes in the preheated oven, or until light and golden brown. Cool cookies completely before frosting.

Enjoy!